CHRONICLE OF MONETARY POLICY OF 1998
APRIL AND MAY

1 April

Decree of the President of Eesti Pank (Bank of Estonia)
On Testing Credit Institutions Capital Adequacy Reports

Due to the need to change the methodology of calculating capital adequacy and proceeding from Articles 36, 37 and 52 of the Credit Institutions Act, the instructions on calculating the capital adequacy of credit institutions on the solo and consolidated basis will be tested from 31 March to 31 May, as well as the electronic format of the credit institutions net currency position table. The Decree also fixed the deadlines for submitting reports.

7 April

Decision of the Board of Eesti Pank
On Appointing the Vice-President of Eesti Pank

In accordance with Article 9, Section 2, Clause 4 of the Central Bank Act, the Board of Eesti Pank decided to appoint Helo Meigas Vice-President of Eesti Pank and Member of the Executive Management as of 1 July 1998. Prior to her appointment Helo Meigas was Managing Director of the Tallinn Stock Exchange.

15 April

Riigikogu (the Parliament) passed the Deposit Insurance Fund Act. From 1 October 1998, the Fund will guarantee EEK 10 to 20,000 of deposits denominated in Estonian kroons and German marks per every small depositor in every credit institution. The depositor's own responsibility will be 10% of the deposited amount. By 1 January 2010, the upper limit of the guaranteed deposits will be increased to 20,000 ECU.

13 May

Decrees of the President of Eesti Pank
On Approving the Format of the Balance of Payments Reports

Proceeding from Articles 2 and 34 of the Central Bank Act and Article 3 of the Official Statistics Act, and in connection with changes in the data required for drawing up Estonia's balance of payments, the Decree endorsed seven different formats for quarterly reporting on foreign transactions by Estonian resident companies, enforced from 1 April 1998.

The Decree also invalidated the decrees of the President of Eesti Pank On Changes in Enterprises' Reports (from 2 February 1996) and On Amendments to the Balance of Payments Reports Presented by Enterprises (see Eesti Pank Bulletin No 8, 1996, p 4).

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On Issuing a License to Latvijas Unibanka for Opening a Representative Office in Estonia

Proceeding from Article 22 of the Credit Institutions Act and from the Decision of the Board of Eesti Pank On Establishing Subsidiaries or Branches of Foreign Credit Institutions and Procedures of Issuing Licenses (see Eesti Pank Bulletin No 3, 1995, p 3), the Decree authorized the Latvian, Riga-based A/S Latvijas Unibanka to set up a representative office in Tallinn.

22 May

Decree of the President of Eesti Pank
On Testing the Credit Institutions Off-Balance Sheet Transactions Reports

In accordance with Article 52 of the Credit Institutions Act and in view of the need to improve the existing reporting format of off-balance sheet liabilities, the Decree ordered six new reporting formats to be tested from 1 June to 31 August 1998. The Decree also fixed the deadlines for submitting reports.

24 May

Shareholders of Eesti Ühispank (Union Bank of Estonia) and Tallinna Pank at their meetings approved the merger agreement signed between the two banks on 22 April.